Currency markets are moving slower this morning as analysts decided that last Friday’s promising US jobs numbers were unlikely to spur the Fed toward more interest rate hikes, especially with economic uncertainty still looming in the UK, the rest of Europe, and in China.
In the UK, the pound isn’t seeing much movement as investors are looking toward Thursday’s Bank of England meeting, which will be the first since Brexit became official. Most analysts don’t expect any suprises for this meeting, but some do expect that next month’s meeting could bring more interest rate cuts and quantitative easing.
Further East, the yen fell against 31 other currencies this morning after Japanese Prime Minister Shinzo Abe said he would use fiscal stimulus to try and boost Japan’s slow economy after the ruling party’s victory in Sunday’s upper house elections.
EURUSD: Euro is trading flat this morning with little new data out.
GBPUSD: The pound is mostly unchanged as investors await Thursday’s BOE announcement.
AUDUSD: Aussie dollar trading choppy this morning as top trading partner China’s inflation data is still weak.
USDCAD: Canadian dollar is up as June’s housing start data beat analyst expectations.